In Standard&Poor's Ratings Services' opinion, supporting the ratings on Bermuda are low government indebtedness—among the lowest of rated sovereigns. We estimate the government to be in a small fiscal creditor position, with assets of its two major pension funds of 21% of GDP exceeding its debt. We expect this position to swing into a debit position, with Bermuda becoming a net general government debtor of 8% of GDP by 2011, as the government moves forward with its social services agenda, completes significant capital projects, and allows automatic fiscal stabilizers to operate fully. We expect general government deficits to rise noticeably, to 5% in 2009 and 2010 from 3% in 2008. Nevertheless, we expect the country's level of indebtedness
